Trade secret statutes

Trade secret statutes

Twenty-four states have specific statutes that directly or indirectly criminally punish the theft of trade secrets.FN2 They are: Arkansas,FN3 California,FN4 Colorado,FN5 Connecticut,FN6 Florida,FN7 Georgia,FN8 Maine,FN9 Maryland,FN10 Massachusetts,FN11 Michigan,FN12 Minnesota,FN13 Montana,FN14 Nebraska,FN15 New Hampshire,FN16 New Jersey,FN17 New Mexico,FN18 New York,FN19 Ohio,FN20 Oklahoma,FN21 Pennsylvania,FN22 Tennessee,FN23 Texas,FN24 Utah,FN25 and Wisconsin.FN26

In most states, what qualifies as or does not qualify as a trade secret for the application of criminal law will differ from the definition accepted in a civil law suit. Most of these statutes require that the trade secret stolen be embodied in a physical form.FN27

If a criminal action is contemplated, two major considerations must be kept in mind: the consequence of a verdict of not guilty and whether the trade secret can be maintained.FN28 If the defendant is found not guilty, it is quite possible that an action will be filed against the trade secret owner for malicious prosecution, slander, libel and the like.FN29